Because of the relationship between an asset's real rate of return and its risk, one would expect to find all of the following, except one. Which one?
A) Corporate stocks have higher rates of return than U.S. Treasury bonds.
B) Corporate stocks have higher rates of return than U.S. Treasury bills.
C) Corporate stocks have higher rates of return than corporate bonds.
D) Stocks of smaller companies have higher expected rates of return than stocks of larger companies.
E) Mutual funds including stocks of companies in politically volatile developing countries do not have as high a rate of return as mutual funds restricted to stocks of companies in developed economies.
E
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The form of property ownership rights inherited from the colonial period was characterized by which of the following?
(a) Property ownership was almost ideal as the base for a free-market economy. (b) Property ownership established property, including land, as a "commodity" that could be easily bought and sold. (c) Property ownership proved to be an excellent vehicle for economic growth. (d) All of the above.
The decrease in total surplus that results from a market distortion, such as a tax, is called a
a. wedge loss. b. revenue loss. c. deadweight loss. d. consumer surplus loss.